News


The market mood feels rather unsettled and despite a modest showing by dip buyers yesterday, it doesn’t really provide us with fresh direction in terms of risk sentiment and equities. The S&P 500 index shows that we are consolidating a bit as the push and pull continues:

Asian equities are feeding off the positive turnaround in Wall Street yesterday, while European futures are also pointing a little higher in trying to play catch up to the late turnaround in US stocks. However, US futures are indicating that risk remains sluggish with S&P 500 futures down 0.3%, Nasdaq futures down 0.4%, and Dow futures down 0.3%.

On the one hand, we’ve somewhat priced in maximum hawkishness already by central banks and one can argue that for some market pricing, traders have overstepped a little. *coughs in ECB*

That said, it doesn’t take away from the fact that we’re staring down stagflation risks and a pronounced economic slowdown globally. But as we look past rate hikes (eventually), the focus will switch towards when will central banks start talking about rate cuts – a tailwind for stocks – instead. That may not come until late 2023 but as economic data worsens by the day, we’re only drawing that timeline closer surely.



Source link

Articles You May Like

Atlanta Fed GDPNow growth estimate for Q2 comes in at 2.7% up from 2.5% prior
iFX EXPO International 2024 in Review
Atlanta Fed GDPNow Q2 growth estimate rises to 2.5% versus 2.2% last
FX option expiries for 17 July 10am New York cut
RBNZ's own preferred inflation model 3.6% y/y (prior 4.2%) for Q2 2024

Leave a Reply

Your email address will not be published. Required fields are marked *